Michael Ring
Question:134 Mr. Ring asked the Minister for Social, Community and Family Affairs if, in budget 2002, he will increase the pre-1953 pension payable to approximately 30,000 persons to the maximum contributory pension rate. [21580/01]
Written Answers. - Pension Provisions.
The special pre-1953 pension was introduced by me from May 2000 and provides for a flat-rate old age contributory pension payable at 50% of the maximum personal rate for people who commenced insurable employment before 1953 and who have at least 260 paid contributions, at the appropriate rate, which can comprise a combination of contributions made before and after 1953. This measure is primarily designed to benefit people with pre-1953 insurance who, because they cannot satisfy the normal yearly average rule, did not qualify for a contributory pension.
The rate paid to those qualifying for this special pension is the same as that paid to someone receiving pension under the standard qualifying conditions with a yearly average of ten to 14 contributions over their working lives. A similar payment is also being made to those receiving the special self-employed pension introduced by me in 1999.
Since its introduction, some 7,400 new pensions have been awarded with a further 10,300 applications currently at various stages of processing. In addition, 8,500 people who were already in receipt of a pro rata old age contributory or retirement pension at less than 50% of the maximum personal rate have also benefited from this measure.
Proposals to increase the level of the pre-1953 pension, and other similar payments, would have very significant cost implications which could only be considered in a budgetary context.
Denis Naughten
Question:135 Mr. Naughten asked the Minister for Social, Community and Family Affairs the reason an individual on an English pension should have their Irish non-contributory pension reduced in line with any increase which takes place on their English pension; the plans he has to review this situation; and if he will make a statement on the matter. [22621/01]
There are over 111,000 people receiving support through an old age non-contributory pension or widow's-widower's non-contributory pension from my Department, at an aggregate cost of over £472 million in 2001. Some 10,300 of these people are receiving this pension as a supplement to their British retirement pension income.
In determining entitlement to old age non-contributory and widow's-widower's non-contributory pension, the Social Welfare Acts specify that account must be taken of all income, including British or other pensions, for means assessment purposes. Under this legislation, pensioners are required to notify my Department of any change in circumstances which might affect their pension entitlement. Where they do not do so, the result is that they receive higher amounts of Irish pension than they are entitled to.
There have been substantial increases in Irish pensions in recent years and the means test for qualification for pension has been substantially improved. The basis of the schemes, however, is that income is assessable under the same rules whether it arises from a British pension or any other source and it would be unfair to other pensioners if income from British pensions were to be treated more favourably.
The value of British retirement pension for Irish resident recipients has increased in recent years directly through growth in rates of payment and indirectly through a beneficial sterling rate relative to the Irish pound. Where these increases are notified to my Department, they have to be taken into account and the rate of Irish pension appropriately adjusted.
In the context of reviews of pension entitlements, British retirement pension income is assessed for means purposes using the sterling to euro rate of exchange, either at the date of the last increase in British pension or the rate of exchange in subsequent quarters, whichever is most beneficial to the pensioner. Any pensioner who experiences a revised decision on their entitlements have the right of appeal to the social welfare appeals office. It is also open to them at any stage to request the Department to review their means if their circumstances change, for example, if the value of their other income drops.